Chapter 10 Vocab (Notes) Flashcards Preview

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Flashcards in Chapter 10 Vocab (Notes) Deck (18):
1

Declarations

statements that provide information about the particular property or activity to be insured

2

Insuring Agreement

summarizes the major promises of the insurer

3

Named Perils Coverage

only those perils specifically named in the policy are covered

4

Exclusions

Provisions in an insurance contract that list the perils, losses, and property excluded from coverage

5

Named Insured

person or persons named in the declarations section of the policy

6

First Named Insured

has certain additional rights and responsibilities that do not apply to other named insureds

7

Endoresement

a written provision that adds to, deletes from, or modifies the provisions in the original contract

8

Deductible

provision by which a specified amount is subtracted from the total loss payment that otherwise would be payable

9

Straight Deductible

the insured must pay a certain number of dollars of the loss before the insurer is required to make a payment

10

Aggregate Deductible

means that all losses that occur during a specified time period, usually a year, are accumulated to satisfy the deductible amount

11

Calendar Year Deductible

a type of aggregate deductible that is found in basic medical expense and major medical insurance contracts

12

Elimination (waiting) Period

stated period of time at the beginning of a loss during which no insurance benefits are paid

13

Coinsurance Clause

in a property insurance contract encourages the insured to insure the property to a stated percentage of its insurable value

14

Coninsurance Clause

requires the insured to pay a specified percentage of covered medical expenses in excess of the deductible

15

Pro Rata Liability

each insurer's share of the loss is based on the proportion that its insurance bears to the total amount of insurance on the property

16

Contribution by Equal Shares

each insurer shares equally in the loss until the share paid by each insurer equals the lowest limit of liability under any policy, or until the full amount of the loss is paid

17

Primary and Excess Insurance Provision

the primary insurer pays first, and the excess insurer pays only after the policy limits under the primary policy are exhausted

18

Coordination of Benefits

provision in group health insurance is designed to prevent overinsurance and the duplication of benefits if one person is covered under more than one group health insurance plan